Written answers

Wednesday, 12 November 2014

Department of Agriculture, Food and the Marine

Agrifood Sector

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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32. To ask the Minister for Agriculture, Food and the Marine the extent to which he expects the agrifood sector to benefit from his recent visit to China with particular reference to any new markets likely to become available; and if he will make a statement on the matter. [42987/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I led a trade mission to China from 2-7 November which comprised 37 of Ireland’s leading agri-food and agri-services companies and which included over 50 trade promotion meetings in 5 cities. The purpose of the trade mission was to provide an opportunity toshowcase Ireland’s world class food and drink products and services in this expanding market and to facilitate business to business meetings between companies. The opportunities and potential of the Chinese market for the Irish agri-food and related sectors are enormous. The importance of the Chinese market to Ireland is demonstrated in our agri-food and related exports to China and Hong Kong which have expanded from €254m in 2011 to €442m in 2013, a 74% increase, while exports to the end of August 2014 amounted to €405m from €300m in the same period last year, a 35% increase. I would expect to see these exports reaching €500m this year. The potential for our exports to continue to grow is linked to China’s ongoing food security and food safety concerns and an insatiable demand for infant formula, from which Ireland can benefit strategically because of our potential to increase production particularly in the dairy sector from 2015, and because Ireland is, increasingly in the eyes of the Chinese, being regarded as a country which has the highest food safety standards, having had all its dairy plants, which applied to export to China, approved this year.

Following political meetings with my Chinese counterparts, including the Minister for Agriculture (Mr. Han Changfu) and the Minister responsible for market access (Mr. Zhi Shuping), we have had a significant breakthrough on beef, with a firm commitment from the Chinese Quarantine and Inspection Service (AQSIQ) to carry out a formal inspection visit in Ireland in early December. My Department has already begun an intensive engagement with the Chinese authorities and with Irish industry on the planning for this inspection visit. In addition the Chinese authorities also agreed to the wording of a certificate for the export of bovine semen to China which paves the way for the first exports of bovine semen from Ireland to China. An Irish company (Dovea) signed a contract of intent to export bovine semen.

In the dairy sector, the week saw a number of events marking strategic partnerships between Irish and Chinese dairy companies which are now resulting in dairy produce including infant formula, manufactured in Ireland and identified as originating in Ireland on sale on Chinese supermarket shelves, and becoming the premier product of choice for Chinese consumers. We are fortunate to have Irish companies such as IDB, Glanbia, and Kerry Foods, and multinationals such as Abbot, Wyeth, and Nutricia, which have manufacturing facilities in Ireland, representing Ireland in this important market. In seeking to ensure that there are no technical barriers to trade in the future, I have agreed an MOU with Minister Shuping on introducing a pilot electronic certification system in the dairy sector.

In the seafood sector, I opened the largest ever Irish stand at the Chinese Seafood Expo, in Qingdao, the largest in Asia, where Ireland was represented by 11 companies. I also concluded an MOU with Minister Zhi Shuping of AQSIQ on facilitating market access for seafood into China. While our exports of seafood are small, valued at €16m in 2013, these exports have grown by almost 50% from 2012 when we exported just €7m. A number of agri-services companies on the trade mission also concluded contracts in China including Samco and Keenans.

The one clear message I received from the Chinese authorities, companies and buyers this week is that they know and trust food originating from Ireland as being produced to the highest standards when it comes to food safety, quality and sustainability. It’s important now that we build on this momentum and keep focused on providing quality agri-food, seafood products and services to the Chinese market.

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